Broadcom (NASDAQ:AVGO) Hits New 1-Year High – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $407.29 and last traded at $400.5550, with a volume of 7259772 shares. The stock had previously closed at $390.24.

Wall Street Analysts Forecast Growth

AVGO has been the subject of several analyst reports. Mizuho set a $435.00 price target on shares of Broadcom and gave the company an “outperform” rating in a research report on Tuesday, October 21st. Citigroup reiterated a “buy” rating and set a $415.00 target price (up from $350.00) on shares of Broadcom in a research note on Tuesday, October 14th. Wall Street Zen cut Broadcom from a “buy” rating to a “hold” rating in a research note on Sunday, November 23rd. Bank of America increased their price objective on Broadcom from $400.00 to $460.00 and gave the company a “buy” rating in a research report on Monday, December 1st. Finally, UBS Group reissued a “buy” rating and issued a $472.00 target price (up previously from $415.00) on shares of Broadcom in a research report on Monday, December 1st. Three research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, Broadcom presently has an average rating of “Buy” and a consensus target price of $391.04.

Broadcom Price Performance

The company has a market capitalization of $1.89 trillion, a P/E ratio of 102.37, a price-to-earnings-growth ratio of 1.33 and a beta of 1.19. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37. The firm’s 50-day moving average is $356.79 and its 200-day moving average is $312.70.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.03. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The business had revenue of $15.95 billion for the quarter, compared to analysts’ expectations of $15.82 billion. During the same quarter last year, the company posted $1.24 EPS. The company’s revenue was up 22.0% compared to the same quarter last year. Analysts predict that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Insider Transactions at Broadcom

In other news, insider Charlie B. Kawwas sold 3,893 shares of the stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $347.82, for a total value of $1,354,063.26. Following the completion of the sale, the insider directly owned 25,295 shares of the company’s stock, valued at $8,798,106.90. This represents a 13.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Kirsten M. Spears sold 7,498 shares of the company’s stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $347.66, for a total transaction of $2,606,754.68. Following the completion of the transaction, the chief financial officer directly owned 313,330 shares of the company’s stock, valued at $108,932,307.80. This represents a 2.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 665,271 shares of company stock valued at $225,483,192. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Institutional investors and hedge funds have recently modified their holdings of the stock. Sawyer & Company Inc boosted its holdings in shares of Broadcom by 62.1% during the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 36 shares during the last quarter. Longfellow Investment Management Co. LLC purchased a new stake in shares of Broadcom in the second quarter worth about $27,000. Legend Financial Advisors Inc. bought a new position in Broadcom during the second quarter valued at approximately $28,000. Teachers Insurance & Annuity Association of America purchased a new position in Broadcom during the 2nd quarter valued at approximately $28,000. Finally, LGT Financial Advisors LLC bought a new stake in Broadcom in the 2nd quarter worth approximately $31,000. Institutional investors own 76.43% of the company’s stock.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.